1. EPF9 The student will demonstrate knowledge of the
global economy
2. Growing Economic
Interdependence
Greater specialization leads to interdependence
between producers and consumers.
As a result of growing international
interdependence, economic conditions and policies
in one nation increasingly affect economic
conditions and policies in other nations.
3.
4. US dependence on others
The economy of the United States depends on
resources and markets around the world for the
production and sale of goods and services.
5. Effects of Other Economies on US
When other economies slow, they may buy less
from the United States, and this can slow the United
States economy.
When other economies expand, they may buy
more from the United States, stimulating the United
States economy.
6. Cheaper Foreign Resources
To be competitive and increase profits, businesses seek
to reduce costs of production.
When natural or human resources are cheaper in
other countries, United States businesses use
foreign resources when they can, affecting the
United States labor market.
This may involve moving production to other
countries (i.e., offshoring) or sending work via the
Internet to workers in other countries (i.e.,
outsourcing).
7. Cheaper Foreign Goods
When foreign goods are cheaper or better, United
States consumers may buy them, affecting the
demand for United States goods and services and the
jobs of those who produce them.
